Market News

Cattle futures, cash trade down sharply

Chicago Mercantile Exchange live cattle futures were sharply lower on technical and fund selling, along with continued concerns about beef demand. It was not a good week for live cattle futures trade, but at this point, contracts do look oversold. December was $2.00 lower at $164.45 and February was down $2.10 at $164.87.

Feeder cattle futures were lower. Contracts were up early thanks to short covering and the discount to cash, but could not follow through due to a lack of follow through buying and spillover from the live pit. January was down $1.07 at $234.87 and March was $.82 lower at $231.22.

Direct cash cattle trade was slow to develop Friday, but there was an appreciable test by the afternoon, with light to moderate activity, at least in Kansas and Nebraska. In Kansas, live sales were at $168, and Nebraska, live sales were at $166 and dressed trade was at $264. In Nebraska, that’s pretty much steady with Thursday’s trade and overall, prices were down sharply from last week.

At the feeder cattle auction in Mitchell, South Dakota, estimated receipts were 6,900 head. Compared to the last test two weeks ago, steer and heifer calves were steady to $15 higher, while yearly steers and heifers were mostly steady, with instances of $5 higher. Demand was reportedly good to very good and the market was active, with the most aggressive interest noted on calves weaned at least 45 days. 578 pound feeder steers sold at $285.50 to $315 and 625 pounders ranged from $257 to $281.50. 575 pound feeder heifers brought $251 to $273 and 834 pound heifers ranged from $215.25 to $223.35. 837 pound Holstein steers sold at $178.50 to $187.75.

Boxed beef was lower on moderate demand and moderate to heavy offerings. Choice was down $1.88 at $252.54 and Select was $3.57 lower at $236.69. The estimated slaughter of 105,000 head was down 2,000 on the week and 9,000 on the year.

Lean hog futures were lower, pressured by demand concerns and uncertainties about PEDv as we head into winter. Most contracts are at a discount to cash, but that may not be much of a factor until we get closer to December’s expiration. December was down $1.02 at $86.60 and February was $1.00 lower at $85.62.

Hog markets were mixed to end the week, depending on late week packer demand and early plans for the coming week. Saturday’s kill is projected at 90,000 head. This week’s slaughter should be around 2.24 million head, which would be down about 4% from this time last year. Wholesale pork demand is a continued question mark.

National Direct barrows and gilts closed $.22 higher with a price range of $80 to $87 for a weighted average of $84.54 and the Eastern Cornbelt was $.48 lower at $82 to $85.50 with an average of $83.80, while the Western Cornbelt was up $1.17 at $80 to $87 for an average of $85.57 and Iowa/Southern Minnesota was $1.31 higher at $80 to $87 with an average of $85.73. Midwest cash markets were steady to $2 lower at $57 to $66. The Missouri Direct base carcass meat price was steady to $1 lower at $78 to $79 on light to moderate supply and demand. Missouri sows were steady at $58 to $70. Illinois sows were down $1 at $55 to $69.

The pork carcass cutout value was down $.93 at $92.69. Loins were firm, all the other primals were weak to sharply lower. The estimated slaughter of 426,000 head was up 8,000 from a week ago, but down 3,000 from a year ago.